Advances in Management & Applied Economics, vol. 4, no.2, 2014, 111-129
ISSN: 1792-7544 (print version), 1792-7552(online)
Scienpress Ltd, 2014
Impact of Emotional Intelligence on the Establishment
and Development of High Quality Leader Member
Exchange (LMX)
Guven Ordun 1 and Asli Beyhan Acar2
Abstract
Leader member exchange (LMX) theory focuses to the dyadic relations between leader
and each member. Members are classified into two groups as in-group and out-group
members. As out-group members try to fulfill their predefined tasks, in-group members’
roles and responsibilities are negotiated and expanded. LMX process can be identified as
reciprocal sacrifice. In-group members do more than expected for their leaders and in
exchange they get more concern, understanding, help and support from their leaders.
Members align with the leaders for several reasons as they like their leaders, they believe
in the capabilities or wisdom of their leaders, they identify themselves with the leader or
sometimes they are just willing to achieve their own goals or satisfy their own needs in a
quicker way. The expectations, needs, values and personalities of the members are
assumed to be important as being a member of the in-group. Although emotional
intelligence level of the leader is investigated as an antecedent for LMX, researches
analyzing the emotional intelligence dimensions of the members are relatively few. This
research focus to the emotional intelligence dimensions of the members and investigates
the impact of these dimensions on being a member of in-group or out-group.
JEL classification numbers: D23, M12, M1
Keywords: Emotional Intelligence (EI), Leader Member Exchange (LMX), contribution,
respect, loyalty, affect.
1
Istanbul University, Faculty of Business Administration, Department of Organizational Behavior,
Turkey.
2
Istanbul University, Institute of Business Administration, Turkey.
Article Info: Received : January 17, 2014. Revised : February 12, 2014.
Published online : April 10, 2014
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GuvenOrdun and AsliBeyhanAcar
1 Introduction
A vertical dyad linkage model has been proposed as an alternative to average leadership
styles [1]. This model than progressed into a more effective leadership style depending on
the development and maintenance of relations between leaders and each of the members.
Leader member exchange theory focuses to the relations between leader and each
member. The relations between LMX and performance, satisfaction, commitment, justice
perceptions, intention to quit have been analyzed. As the main antecedents and
determinants of LMX both the qualities of leader and members or also investigated.
Significant relations have been identified depending on the personality characteristics,
values, needs and expectations, demographical characteristics of both leaders and
members.
Instead of a single vertical dyadic link, multidimensional perspective for LMX proposes
affect, loyalty, contribution and professional respect as the main determinants of
exchange. There are considerable researches about the relations between high levels of
LMX and several organizational and group outcomes such as performance, absenteeism,
turnover, commitment and satisfaction.
One of the earliest studies classifies intelligence into three groups as. The first
classification of intelligence involves abstract, analytical, verbal intelligence. The second
associated with mechanical, performance, visual-spatial intelligence [2]. The third one,
social intelligence, has been less studied among all. A part of social intelligence,
emotional intelligence involves recognizing emotion, reasoning with both emotion and
emotion related information, process this kind of information as a part of problem solving
ability [3].Several researchers on leadership argues leadership effectiveness depend on
leader’s ability to solve complex social problems in organizations. Thus emotional
intelligence of the leader considered to be important during the formation and the
development of the exchanges in LMX studies. But researches focusing to the emotional
intelligence of the group members during this transition period are relatively few in the
literature.
Group members have been labeled as in-group and out-group members during the
transition period of LMX. The classification depends on the quality of their relations with
the leader. As some work more for their leaders and become privileged members others
cannot exceed standard definitions of membership. Demographical and personality
characteristics, values even abilities of members have been investigated as the
determinants of in-group membership.
The main purpose of this study is to analyze the emotional intelligence levels of the group
members and investigate if the differences in the emotional intelligence affect in-group
membership. The study has been conducted in a retail company with more than 60 stores
citywide. 214 section chiefs has answered the both emotional intelligence and leader
member exchange questionnaires.
2 Leader Member Exchange Theory
Leadership studies can be classified in three broad categories. Several theories as trait
approach, charismatic leadership and skills approach focus to the main traits, capabilities
and skills of the leader. Identify leaders as specific individuals with privileged inborn
qualities. Some behavioral leadership theories like in Hersey-Blanchard’s situational
Establishment and Development of High Quality Leader Member Exchange (LMX)
113
approach emphasize the follower characteristics and define leaders as the one’s match
their styles with the needs and expectations of the followers. While theories like vertical
dyadic linkage model and leader member exchange theory focus the relation between
leaders and members.
Three domain approaches to leadership is discussed in Table 1. The emergence of
leadership, the advantages and disadvantages of each perspective is also explained.
Table 1: Three Domain Approaches to Leadership [4]
What is
leadership?
Leader-Based Relationship-Based
Appropriate behavior of the Trust, respect and mutual
person in leader role
obligation that generates
influence between parties
Follower-Based
Ability and motivation
to manage one’s own
performance
What behaviors
constitute
leadership?
Establishing and
communicating vision;
inspiring, instilling pride
Building strong
Empowering,
relationship with
coaching, facilitating,
followers; mutual learning giving up control
and accommodation
Advantages
Leader as rallying point for
organization; common
understanding of mission
and values; can initiate
wholesale change
Accommodates differing
needs of subordinates; can
elicit superior work from
different types of people
Disadvantages
Highly dependent on leader;
problems if leader changes
or is pursuing inappropriate
vision
Time-consuming; relies on Highly dependent on
long-term relationship
follower initiative and
between specific leaders ability
and members
When
appropriate
Fundamental change;
charismatic leader in place;
limited diversity among
followers
Continuous improvement
teamwork; substantial
diversity and stability
among followers;
network building
Highly capable and
task committed
followers
Where most
effective?
Structured tasks; strong
leader position power;
member acceptance of
leader
Situation favorability for
leader between two
extremes
Unstructured tasks;
weak position power,
member
nonacceptance of
leader
Makes the most
follower capabilities;
frees up leaders for
other responsibilities
Leader-member exchange (LMX) theory conceptualizes leadership as process that is
understood by the quality of interactions and opportunities surrounding the dyadic
relationships between leaders and their members. While most leadership research focused
on identifying best practices for optimizing organizational outcomes (e.g., satisfaction,
motivation, goal attainment) LMX research describes the leadership dynamics that take
place implicitly and explicitly in organizations [5].
High quality LMX refers to the strength or the bound between leader and each of the
members. Although there is no real division or even discrimination between members
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GuvenOrdun and AsliBeyhanAcar
depending on the strength of the relations, group members can be categorized as in-group
or out-group.
High quality LMX relationships are characterized by such attributes as mutual trust,
respect, liking eachother, extra-role behavioral exchanges, and higherlevels of emotional
support. Low quality LMX is at the opposite end of the continuum and can be
characterized as being transactional in nature, with the two parties engaging in a more
strictly role-defined, top-down relationship [6].
LMX theory essentially states that supervisors treat their subordinates differently; some
members receive more favorable treatment than others. Increased job satisfaction, higher
performance ratings, higher levels of delegation, salary progression, higher promotion
opportunities, career satisfaction, supply of resources and support for innovative behavior
assumed to be the positive outcomes of these members [7].
Supervisor-subordinate exchanges that are higher quality are close working relationships
characterized by trust and support, interpersonal attraction, loyalty, and mutual influence.
Higher quality exchange subordinates are also referred as “in-group”. Others do not
engage behaviors that exceeds their standard role definitions become labeled as “out
group”.
Since high quality LMX is related to positive outcomes for employees, it can be expected
that they will receive more of what was initially promised to them and therefore it can
also be expected that they would be more inclined to perceive their psychological contract
as having been fulfilled [7]. In general, the quality of a leader-follower relationship will
determine how both parties, leaders and followers, experience their work and engage in it
– with perceived relationship quality consequently being positively related to
organizationally relevant and desirable outcomes [8].
Mankins[9] proposes the idea that organizations willing to be effective should focus on
core activities and minimize the amount of time on noncore activities. Relationship
between leaders and followers are time consuming and perceived as not being essential
for organizational productivity. But considerable amount of research has been conducted
in order to analyze especially the positive outcomes of high quality LMX. As some of the
researchers focus to the positive outcomes of the organization such as performance,
effectiveness, productivity [10];[11],some focus to the group level and analyze concepts
as teamwork, cohesiveness and conflict [12]; [13];[14], while the rest of the researchers
try explain the effects of LMX on individual level, such as perception of fairness
satisfaction, commitment, prosocial and counterproductive work behavior [15]; [16].
Schriesheim et al. [17] conducted a meta analytic study in order to define the main
antecedents and the consequences of LMX. Traditionally, LMX has been treated as a
global construct that represents a measure of the general quality of the exchange
relationship between a supervisor and a subordinate. More recently, however, Dienesch
and Liden[18] argued that there is no clear theoretical or empirical justification for the
traditional conceptualization of LMX as a unidimensional construct. They maintained that
the theoretical bases of LMX theory (e.g., role theory, social exchange theory) are more
consistent with a multidimensional perspective.Dienesch&Liden (1986) and
Liden&Maslyn (1998) [19] proposed four dimensions of LMX relationships labeled
“contribution” (e.g., performing work beyond what is specified in the job description);
“affect” (e.g., friendship and liking); loyalty (e.g., loyalty and mutual obligation) and
professional respect (e.g., respect for professional capabilities). Identifying these four
dimensions of leader-member relationships is important because relationships, which
differ in their exchange currencies, also may have different antecedents and consequences
Establishment and Development of High Quality Leader Member Exchange (LMX)
115
[20].These dimensions, which they did not propose to be exhaustive, are “contribution,”
or the in-role and extra-role tasks that the subordinate completes for the supervisor;
“loyalty,” which is exemplified by the degree to which the subordinate and supervisor are
willing to publicly support one another; “affect” or the degree to which the subordinate
and supervisor mutually like each other based on interpersonal attraction; and
“professional respect” or the degree to which each member of the dyad perceives the
other as excelling at his or her work [6].
The dimensions of LMX that mentioned above and their brief definitions are in Table 2.
Table 2: LMX Dimensions Definitions [19]
Affect
Loyalty
Contribution
Professional Respect
The mutual affection members of the dyad have for each other based
primarily on interpersonal attraction, rather than work or
professional values. Such affection may be manifested in the desire
for and/or occurrence of a relationship, which has personally
rewarding components and outcomes (e.g., a friendship).
The expression of public support for the goals and the personal
character of the other member in the LMX dyad. Loyalty involves
faithfulness to the individual that is generally consistent from
situation to situation.
Perception of the current level of work-oriented activity each
member puts forth toward the mutual goals (explicit or implicit) of
the dyad. Important in the evaluation of work-oriented activity is the
extent to which the subordinate member of the dyad handles
responsibility and completes tasks that extend beyond the job
description and/or employment contract; and likewise, the extent to
which the supervisor provides resources and opportunities for such
activity.
Perception of the degree to which each member of the dyad has built
a reputation, within and/or outside the organization, of excelling at
his or her line of work. This perception may be based on historical
data concerning the person, such as: personal experience with the
individual; comments made about the person from individuals
within or outside the organization; and awards or other professional
recognition achieved by the person. Thus it is possible, though not
required, to have developed a perception of professional respect
before working with or even meeting the person.
Although the dimensions of LMX refers to the relations between leader and each of
his/her member, emotionality is considered to be an important issue that affects the
quality of the exchanges, effectiveness of the leader and evaluations of followers.
3 The Concept and the Dimensions of Emotional Intelligence
There are several definitions for emotions in the literature. Emotions can be defined as
notions of feelings, fluctuations in the control of behavior, appraisals of experiences,
physiological arousal and expression [21].
One tradition in psychology emotional and logical thoughts are perceived as opposite to
one another. From this point of view emotion is seen as disrupting, misdirecting and
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interfering with attempts to functional rationally in the world. But a competing argument
has viewed emotion as part of and contributor to logical thought and intelligence and it
has been referred as emotional intelligence. Emotional intelligence is described as a type
of emotional information processing that includes accurate appraisal of emotions in
oneself and others, appropriate expression of emotion and adaptive regulation of emotion
in such a way as to enhance living [22].
Salovey and Mayer [23] define emotional intelligence as the subset of social intelligences
that involve the ability to monitor one’s own and others’ feelings and emotions, to
discriminate among them, and to use this information to guide one’s thinkingand actions.
Logical and Emotional Intelligence are not the opposite sides but considered to be distinct
capabilities. In fact several dimensions of logical and emotional capabilities are related
with each other but as this relation is so limited it is argued that logical and emotional
intelligence is distinct concepts [24].
Emotional intelligence involves the capacity to carry out reasoning in regard to emotions,
and the capacity of emotions to enhance reasoning. More specifically, EI is said to
involve the ability to perceive and accurately express emotion, to use emotion to facilitate
thought, to understand emotions, and to manage emotions for emotional growth. A
number of related concepts exist, including emotional competence, emotional creativity,
and empathic accuracy [25].
Perceiving emotions introduces the ability to accurately identify emotions in oneself and
others, using cues from facial expressions, voice, or gestures. Using emotions denotes the
ability to generate, use, and feel emotion as necessary to communicate feelings or employ
them in other cognitive processes. Understanding emotions entails the ability to
understand their causes, and consequences and how they change over time. EI also
involves the management of emotions in oneself and others [26].
Goleman [27] based on Salovey and Mayer’s definition, and identifies five emotional
competencies:





The ability to identify and name one's emotional states and to understand the link
between emotions, thought and action
The capacity to manage one's emotional states – to control emotions or to shift
undesirable emotional states to more adequate ones
The ability to enter into emotional states (at will) associated with a drive to achieve
and be successful
The capacity to read, be sensitive to and influence other people's emotions
The ability to enter and sustain satisfactory interpersonal relationships.
The table below lists Golemans' 5 components of emotional intelligence and the 25
emotional competencies:
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117
Table 3: Goleman’s 5 Components of Emotional Intelligence and the 25 Emotional
Competencies [28]
SELF-AWARENESS
SELF-REGULATION
MOTIVATION
EMPATHY
PERSONAL COMPETENCE
Observing yourself and recognizing
your feelings; building a vocabulary for
feelings; knowing the relationship
between thoughts, feelings and
reactions.
Emotional Awareness:
recognizing one's emotions
and their effect
Accurate Self-Assessment:
knowing one's strengths
and limits
Self-confidence: A strong
sense of one's self-worth
Managing
one’s
internal
states, Self-control: Keeping
impulses, and resources
disruptive emotions and
impulses in check
Trustworthiness:
Maintaining standards of
honesty and integrity
Conscientiousness: Taking
responsibility for personal
performance
Adaptability: Flexibility in
handling change
Innovation: Being
comfortable with novel
ideas, approaches and new
information
Emotional tendencies that guide or Achievement Drive:
facilitate reaching goals
Striving to improve or meet
a standard of excellence
Commitment: Aligning
with the goals of the group
or organization
Initiative: Readiness to act
on opportunities
Optimism: Persistence in
pursuing goals despite
obstacles and setbacks
SOCIAL COMPETENCE
Awareness of others’ feelings, needs
Understanding Others:
and concerns.
sensing others' feelings
and perspectives, taking
an active interest in their
concerns
Developing others:
Sensing others
development needs and
bolstering their abilities
Service Orientation:
Anticipating, recognizing,
and meeting customers'
needs
Leveraging Diversity:
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SOCIAL SKILLS
GuvenOrdun and AsliBeyhanAcar
Adeptness at including desirable
responses in others
Cultivating opportunities
through different kinds of
people
Political Awareness:
Reading a group's
emotional currents and
power relationships
Influence: Wielding
effective tactics for
persuasion
Communication: Listening
openly and sending
convincing messages
Conflict
Management:
Negotiating and resolving
disagreements
Leadership: Inspiring and
guiding individuals and
groups
Change Catalyst: Initiating
or managing change
Building bonds: Nurturing
instrumental Relationships
Collaboration and
Cooperation: Working
with others toward shared
goals
Team Capabilities:
Creating group synergy in
pursuing collective goals
Personal and social competencies are defined as the main classifications of Emotional
Intelligence. In Table 3 and Table 4 the sub dimensions and the brief explanations are
defined.
4 Emotional Intelligence at Workplace
Mayer and Salovey [29] argue that emotional intelligence abilities enable individuals to
recognize, understand and manage emotions in themselves and others that contribute
better relationships in the workplace.
In agreement with Mayer and Salovey, Cooper and Sawaf (1997, 1998) asserted that
many of the people with a higher Intelligence Quotient (IQ) (therefore considered
intellectually more intelligent) would not consistently succeed in their personal or
professional life, due to the scarcity of control over their emotions, or, opposite to this,
they could manage a full control over their emotions and anxiety, but not be able to
emotionally “tune in” with the others [30].
Emotional intelligence (EI) claims to offer much to businesses of the 21st century with
benefits including improved performance and productivity. For instance, EI predicts
group performance, organizational citizenship behavior. In management roles, Francis
Establishment and Development of High Quality Leader Member Exchange (LMX)
119
and Keegan (2006) note the line manager is now increasingly responsible for absence
management, grievance handling, discipline issues, and counseling employees as well as
appraisal and selection activities, general motivation, and coaching. These are roles that
require EI, particularly in relation to empathy, emotional awareness, and managing
emotions [26].
Several studies have shown that EI affects teamwork and interpersonal relationship at
work. People with high EI are socially perspective at recognizing and understanding the
feelings and emotions in their team and induce positive emotions and attitudes in others.
If EI facilitates effective interpersonal exchanges at work, it may be considered a
prerequisite for group task coordination and leadership emergence [31].
The influence of EI begins with the retention and recruitment of talent. For instance, as
Claudio Fernández-Aráoz points out, the extent to which candidates’emotional
intelligence isconsidered inmaking top executive hiring decisions has a significant impact
on the ultimate success or failure of those executives. The emotional intelligence of the
employees, doing the hiring is also crucial for good hiring decisions [32].
Emotional intelligence creates utile explicabilities to the workplace, both within the
teamwork than the relations to the clients. One example of this theory can be seen in the
concern for challenges and obstacles, or lack of motivation or various difficulties that can
hinder the full achievement of the individuals [30].
Research on leadership effectiveness focuses on efforts to explain factors affecting
leadership in one-way or another. While some researchers focus mainly on the leader’s
individual traits, value system, morality, and authenticity, others prefer to focus on
leadership behaviors and styles, such as task versus-people orientation, transformational,
transactional, laissez-faire, or servant-leadership behavior and style. Leadership
effectiveness as a dependent variable has also been linked to a vast number of situational
variables, including the role of culture, the attributes of followers, and followers’
perceptions [33].
A person with high EI is able to interpret his or her own mood as well as others’ moods,
correctly, and therefore has a higher chance of forming good relationships and getting
social support in general [31].
Several researches emphasize the relations between the dimension of EI and
leadership[34]; [35]; [36]; [37]). Lanser (2000) places a strong emphasis on the
importance of self-awareness in guiding and perfecting job performance, including
interactions with colleagues and in the establishment of positive and productive leadership
and teamwork skillsSelf-awareness of emotions enables team members to then practice
self-regulation, which is the ability to use emotions to facilitate the progress of the task or
the project. Successful teamwork requires intrinsic motivation, persistence and vision.
Goleman (1998) contends that empathy is understanding and interpreting colleagues’
feelings and being able to identify with their feelings on issues through understanding
their perspective and cultivating rapport with people from different ‘walks of life’. Also
team members need to be able to stimulate cooperation, collaboration and teamwork
through well-developed social skills [38].
Pescosolido[39] propose a new role for emergent group leaders, that of the manager of
group emotions. The members who provide certainty and direction during times of
uncertainty may take the leadership. They are able to assume a leadership role by making
an interpretation of emotional response that best serves the groups’ needs and then
modeling that response.
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Sosik and Megerian[40]studied the relationship between transformational leadership
behavior, emotional intelligence, and leader effectiveness. They examine self-awareness
in terms of self- other agreement and private and public self-consciousness. They found
that categorizations of self-awareness are correlated between emotional intelligence of
leadership and leadership behavior. Subordinate ratings of transformational leadership
behavior are positively related to those leaders categorized as self-aware. They concluded
“managers who maintain self-awareness (self–other rating agreement) possess more
aspects of emotional intelligence and are rated as more effective by both superiors and
subordinates than those who are not self-aware”.
5 Research Methodology
5.1 Purpose and Importance of the Study
It has been argued that emotional intelligence would have a direct effect on the quality of
LMX. LMX depends on emotional interchanges. Dasborough and Ashkanasy [41]define
the importance of leaders emotional displays on the establishment and development of the
relationship with the followers. And Kellett [42]found significant relations between
followers perceptions of leaders displayed emotions and leadership emergence. Jordan
and Troth [43] proposed the suggestion that higher level of follower emotional
intelligence would be associated with higher perceived levels of quality LMXs by
followers.
First of all this research focus to the emotional intelligence dimensions of the members
and investigates the impact of these dimensions on being a member of in-group or outgroup. Then we would like to find out the relations between the dimensions of Emotional
Intelligence and the dimensions of LMX and the impact of EI on the variables of LMX.
There are considerable researches investigate the impact of emotional intelligence of the
leader on the LMX relations. But researches focusing the emotionality of the members on
the quality of LMX are relatively few. Thus most of the researches emphasize the
unidimensionality of the LMX. Multidimensional perspective for LMX both focus to the
expanded relations between leader and each member as well as negotiated and accepted
roles and responsibilities beyond their formal role descriptions. We also would like to find
out if same or different variables of EI (whether self or other) affect the relations and role
dimensions of LMX.
5.2 Variables and the Hypothesis of the Study
Emotional Intelligence is measured using the 16 items from Wong and Law Emotional
Intelligence Scale (WLEIS: Wong & Law, 2002)[44]. WLEIS is consistent with Mayer
and Salovey’s conceptualization of emotional intelligence. 7 point scale is used in WLEIS
as 1: least accepted and 7: most accepted. LMX dimensions and the quality of LMX are
measured using 12 items multidimensional model of leader member exchange (LMXMDM) from Liden and Maslyn[19].5 point scale is used in LMX as 1: absolutely disagree
and 5: absolutely agree. Although most of the LMX studies prefer a unidimensional
measure of LMX, as we would like to find out the impact of EI on both relations and
feelings of obligations, a multidimensional scale is preferred.
Establishment and Development of High Quality Leader Member Exchange (LMX)
121
Variables determined for EI as Self Emotional Appraisal, Others’ Emotional Appraisal,
Use of Emotion and Regulation of Emotion and for LMX as affect, Loyalty, Contribution
and Professional Respect.
Hypothesis 1: The EI levels of the members are different between in-group and outgroup. Mayer and Salovey argue that emotional intelligence abilities enable individuals to
recognize, understand and manage emotions in themselves and others, and this contributes
to better relationships in the workplace. LMX classifies the group members as in-group
and out-group depending on the strength of the link or the quality of the relations between
leader and each member. High quality LMX refers to the expanded and negotiated
relations, roles and responsibilities while low quality LMX define relations and
responsibilities depending on the formal contract. Although LMX emphasizes the link
between leader and each member we would like to test the idea if the Emotional
Intelligence levels of the members affects the quality of relations between themselves and
their leader.
Hypothesis 2: The variables of EI are correlated with the variables of LMX.
Self Emotional Appraisal, Others’ Emotional Appraisal, Use of Emotion and Regulation
of Emotion are the main variables of WLEIS. Affect, Loyalty, Contribution and
Professional Respect are the variables of LMX-MDM. WE would like to find out the
relations between each EI variable and any variable of LMX.
Hypothesis 3: Affect, Loyalty, Contribution and Professional Respect is affected by the
dimensions of EI.
LMX can be analyzed on either dyadic relations or behaviors. If the level of commitment
on their leader is described as relational perspective of members LMX, their expanded
behaviors beyond formal role descriptions can be defined as the behavioral perspective of
member LMX. We would like to test the idea if self – other appraisal of emotions or use –
regulation of emotions has an affect on the variables of LMX from the perspective of
members.
5.3 Participants and Method
214 section chiefs of a retail company with 60 groceries have been participated in the
study which 147 of man (68.4%) and 67 of woman (31.2%). 105 participants (%48.8) is
between the age of 18 – 27, 102 (47.4%) between 28 – 40 and 7 (3.3 %) with the age of
41 and above. 119 participants (55.6 %) are married and 95 (44.4 %) of them are single.
128 (59.5 %) of them are high school graduates while 42 (19.5 %) graduated from
primary school, 41 (19.1 %) of them has a bachelor degree and 3 (1.4 %) has a masters
degree. 65 (30.2 %) of the employees have been working within the company less than 3
years, 78 (36.3 %) between 3 to 6 years, 67 (31.2 %) between 6 to 10 years, 4 (1.9 %)
employees have more than 10 year tenure within the organization.
Depending on the variations of the geographical locations, both scales have been
distributed and collected by the help of human resources department. As no names are
required in any of the scales, codes are printed on the scales in order to match EI and
LMX scales and differentiate the stores with each other.
5.4 Results
While low quality LMX (out–group) is associated with formal contracts, predefined roles
and relations, in high quality LMX (in-group) relations between leader and each member
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is negotiated and expanded. In-group membership requires engaging in extra roles and
taking extra responsibilities. LMX dimensions are defined as affect (eg. I like my
supervisor very much as a person.), loyalty (eg. My supervisor defends my work actions
to a superior, even without complete knowledge of the issue in question.), contribution
(eg. I do work for my supervisor that goes beyond what is specified in my job
description.) and professional respect (eg. I am impressed with my supervisor’s
knowledge of his/her job.).
Table 4: Comparison of In/Out-Group Members on Dimension of LMX
Affect
Loyalty
Contribution
Professional
Respect
Group
Mean
Std. Deviation
Out-Group
In-Group
Out-Group
In-Group
Out-Group
In-Group
Out-Group
In-Group
3.56
4.64
2.91
4.38
3.54
4.62
3.47
4.62
.96
.42
.93
.58
1.04
.39
1.02
.42
t
Sig.
(2-tailed)
-10.384
.000
-13.566
.000
-9.776
.000
-10.530
.000
In each dimension of LMX, the mean differences between in-group and out-group
members are significant. The highest difference is calculated in loyalty (out-group,
n=103, mean=2.91, std. dev.= .93 and in-group, n=111, mean=4.38, std. dev.= .58; t=13.566, sig.= 0.000). In-group members are more committed and loyal to their leaders.
Lee (2005) [45] argues that high quality LMX and loyalty to the leader facilitates the
commitment of the employee to the organization. High quality LMX decreases the level
of employee turnover and increases the level of organizational commitment.
Table 5: Comparison of In/Out-Group Members on Dimensions of EI
Std.
Sig.
Group
Mean
t
Deviation
(2-tailed)
Out-Group
5.35
1.47
Others’ Emotion
-3.320
.001
Appraisal
In-Group
5.97
1.18
Out-Group
5.59
1.51
Use of Emotion
-3.920
.000
In-Group
6.29
1.02
Out-Group
5.38
1.67
Regulation of Emotion
-3.834
.000
In-Group
6.13
1.12
Out-Group
5.44
1.66
Self Emotion Appraisal
-3.447
.001
In-Group
6.12
1.13
In-group and out-group members are compared depending on their scores for the
dimensions of EI. In every dimension of EI the mean differences between in-group and
out-group members are calculated as significant. So Hypothesis 1 (The EI levels of the
members are different between in-group and out-group.) is accepted. EI Dimensions are
defined as Self Emotional Appraisal (eg. I have a good sense of why I have certain
feelings most of the time.), Others’ Emotional Appraisal (eg. I always know my friends’
Establishment and Development of High Quality Leader Member Exchange (LMX)
123
emotions from their behavior.), Use of Emotion (eg. I would always encourage myself to
try my best.), and Regulation of Emotion (eg. I am able to control my temper and handle
difficulties rationally.) The highest differences appear in Use of Emotion and Regulation
of Emotion in which the dimensions are directed to explain the relations between
emotions and behaviors.
Table 6: Correlation Analysis of Dimensions
Mean
1
2
3
4
5
6
7
Others’
Emotion
Appraisal (1)
5.67
1
Use of Emotion
(2)
5.95
.701**
1
Regulation of
Emotion (3)
5.77
.670**
.823**
1
Self Emotion
Appraisal (4)
5.80
.777**
.757**
.768**
1
Affect (5)
4.12
.376**
.462**
.438**
.438**
1
Loyalty (6)
3.67
.289**
.294**
.327**
.266**
.621**
1
Contribution
(7)
4.10
.431**
.526**
.532**
.457**
.624**
.574**
1
Professional
Respect (8)
4.07
.497**
.532**
.539**
.548**
.723**
.589**
.689**
** Correlation is significant at the 0.01 Level (2 – Tailed)
The main dimensions of WLEIS and LMX-MDM are positively correlated with each
other. The highest levels of correlation are calculated between professional respect and
self-emotional appraisal (cor.= .548, sig.= .00), contribution and regulation of emotions
(cor.= .532, sig.= .00). Depending on the results the second hypothesis (The variables of
EI are correlated with the variables of LMX) is accepted.
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GuvenOrdun and AsliBeyhanAcar
Table 7: Regression Analysis of Dimensions
AFFECT
Model
R
R Square
F
a
1
.462
.213
57.524
a.b. Predictors: (Constant), Use of Emotion
LOYALTY
Model
R
R Square
F
1
.327a
.107
25.450
a.b. Predictors: (Constant), Regulation of Emotion
CONTRIBUTION
Model
R
R Square
F
1
.532a
.283
83.630
a.b. Predictors: (Constant), Regulation of Emotion
PROFESSIONAL RESPECT
Model
R
R Square
F
1
.548a
.301
91.173
a.b. Predictors: (Constant), Self Emotion Appraisal
Sig.
.000b
Sig.
.000b
Sig.
.000b
Sig.
.000b
Stepwise regression method is used in order to calculate the impact of each dimension of
EI on each dimension of LMX. Use of Emotions assumed to have the highest impact on
the Affect dimension of LMX (R.= .46, R Sq.= .21), Regulation of Emotion both on
Loyalty (R.= .33, R Sq.= .11), and Contribution (R.= .53, R Sq.= .28), Self Emotional
Appraisal on Professional Respect (R.= .55, R Sq.= .30).
Table 8: Coefficient Scores For Dimensions
Unstandardized
Standardized
Coefficients
Coefficients
B
Std. Error
Beta
(Constant)
2.245
.254
1
Use of Emotion
.316
.042
.462
Dependent Variable: AFFECT
Model
Model
Unstandardized
Coefficients
B
Std. Error
2.298
.282
(Constant)
Regulation of
.239
Emotion
Dependent Variable: LOYALTY
1
Model
1
(Constant)
Regulation of
Emotion
.047
Unstandardized
Coefficients
B
Std. Error
2.111
.225
.345
.038
t
Sig.
8.835
7.584
.000
.000
t
Sig.
8.145
.000
.327
5.045
.000
Standardized
Coefficients
Beta
t
Sig.
9.388
.000
9.145
.000
Standardized
Coefficients
Beta
.532
Establishment and Development of High Quality Leader Member Exchange (LMX)
125
Dependent Variable: CONTRIBUTION
Model
Unstandardized
Coefficients
B
Std. Error
1.970
.227
(Constant)
Self Emotion
.362
.038
Appraisal
Dependent Variable: PROFESSIONAL RESPECT
1
Standardized
Coefficients
Beta
.548
t
Sig.
8.686
.000
9.548
.000
The impacts of each dimension of EI on LMX dimension are calculated. The third
hypothesis (Affect, Loyalty, Contribution and Professional Respect is affected by the
dimensions of EI.) is accepted. Use of Emotion has an impact on the level of Affect
dimension, Regulation of Emotions seems to have an important role both on Loyalty and
the Contribution dimensions, Self Emotional Appraisal has an impact on the dimension of
Professional Respect. Although Others’ Emotional Appraisal is correlated with all
dimensions of LMX the impact of this variable seems to be not significant on each of the
LMX dimensions. Contribution dimension is related with taking extra roles and
responsibilities so it can be identified as one of the core dimensions on the definition of
high quality LMX. Regulation of Emotions (controlling one’s emotions) assumed to have
the significant impact on the level of contribution dimension. So instead of controlling the
emotions, making quick decisions and engaging acts depending on the urges of the
emotions assumed to be negatively correlated with the level of Contribution as well as the
high quality LMX.
6 Conclusions
Leadership is one of the most interested and analyzed concepts in social sciences. Several
theories focus to the leader qualities and characteristics while some emphasize the
behaviors of the leaders that fulfill the needs and expectations of the followers. LMX
theory emphasizes the relations between leader and each member. Low quality LMX
depends on formal contracts, predefined roles and responsibilities. High quality LMX
exceeds any formal description orexpectation and explained as negotiated - expanded
roles and responsibilities between leader and members of in-group. Actually high quality
relations depend on reciprocal benefits for both leader and each member.
The role of emotions has to be clarified on the effectiveness and the quality of relations.
Several researchers are directed to explain the impact of Emotional Intelligence on the
effectiveness of the leader and his/her relations with the members but relatively few
studies deal with the Emotional Intelligence levels of the members. High quality LMX
can be defined as a strong dyadic link between the leader and each member. Emotional
Intelligence can be classified as awareness of self and awareness of the other emotions.
And how to control and use one’s self emotions is another important part of the
classification.
First we have tested the relation of emotional intelligence dimensions on the
determination of high quality LMX. In-group members have significantly higher scores
on each EI dimension. Then we have tested the impact of each EI dimension on each
126
GuvenOrdun and AsliBeyhanAcar
LMX dimension. Regulation of emotions (control and coordination of the emotions)
found to be important on the determination of both Loyalty andContribution dimensions
of the LMX.Loyalty refers
To the commitment to the leader and contribution refersto taking extra roles and
responsibilities. So instead of behaving due to the urges of emotions, controlling and
coordinating the emotions will lead to a high level quality of LMX.
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Appendix
A.1. Emotional intelligence items
Self-emotion appraisal (SEA)
1. I have a good sense of why I have certain feelings most of the time.
2. I have good understanding of my own emotions.
3. I really understand what I feel.
4. I always know whether or not I am happy.
Others’ emotion appraisal (OEA)
5. I always know my friends’ emotions from their behavior.
6. I am a good observer of others’ emotions.
7. I am sensitive to the feelings and emotions of others.
8. I have good understanding of the emotions of people around me.
Use of emotion (UOE)
9. I always set goals for myself and then try my best to achieve them.
10. I always tell myself I am a competent person.
11. I am a self-motivated person.
12. I would always encourage myself to try my best.
Regulation of emotion (ROE)
13. I am able to control my temper and handle difficulties rationally.
14. I am quite capable of controlling my own emotions.
15. I can always calm down quickly when I am very angry.
16. I have good control of my own emotions
A.2. Leader Member Exchange Items
Subordinate perspective
Affect dimension (AFF)
(1) I like my supervisor very much as a person.
(2) My supervisor is the kind of person one would like to have as a friend.
(3) My supervisor is a lot of fun to work with.
Loyalty dimension (LOY)
(4) My supervisor defends my work actions to a superior, even without
completeknowledge of the issue in question.
(5) My supervisor would come to my defence if I were ‘attacked’ by others.
(6) My supervisor would defend me to others in the organization if I made an
honestmistake.
Contribution dimension (CON)
(7) I do work for my supervisor that goes beyond what is specified in my jobdescription.
(8) I am willing to apply extra efforts, beyond those normally required, to meet
mysupervisor’s work goals.
(9) I do not mind working my hardest for my supervisor.
Professional respect (RES)
(10) I am impressed with my supervisor’s knowledge of his/her job.
(11) I respect my supervisor’s knowledge of and competence on the job.
(12) I admire my supervisor’s professional skills.